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President Joko Widodo Attended the Listing of Securitization Products by Jasa Marga, HPRP Assisted with the Transaction

September 8, 2017

The President of the Republic of Indonesia, Joko Widodo (Jokowi), attended the listing of securitization products called KIK EBA Mandiri JSMR01- Surat Berharga Pendapatan Tol Jakarta-Bogor-Ciawi (Jagorawi) with the Coordinating Minister for Economic Affairs, the Minister of National Development Planning (PPN) / Head of Bappenas, the Minister of Public Works and Public Housing (PUPR) and other state officials at the Indonesia Stock Exchange (IDX) on 31/8/2017.  With this issuance of securitization products, PT Jasa Marga (Persero) Tbk made history in the Indonesian capital markets, as this is the first Future Revenue Based Securities (“FRBS”) transaction for toll roads in Indonesia.

As reported recently, Jasa Marga announced the Future Revenue Based Securities (FRBS) for corporate funding. In this transaction, the corporation issued a Surat Berharga based on its future revenue from the Jakarta-Bogor-Ciawi toll road, with a maximum value of IDR 2.6 trillion. This Surat Berharga will be the asset of a collective investment contract of asset-backed securities which obtained an effective letter from OJK on August 10, 2017.

HPRP was appointed to assist Jasa Marga in this noteworthy transaction. Led by Partner, Erwin K. Winenda, the HPRP Capital Market team was requested to provide comprehensive legal assistance in the whole transaction.

FRBS are one of the alternatives being used by the Indonesian government for financing infrastructure development. In addition to the financing of toll road construction by PT Jasa Marga (Persero) Tbk, FBRS are also being used by PLN for its infrastructure development in the power sector.

HPRP’s capital market group, under the financial services practice group, has been successfully assisting in many financial transactions, both local and international. Please contact erwin.winenda@hplaw.co.id or hplaw@hplaw.co.id for further details.